Problem #4.9 (same data) will be completed in MS Excel and uploaded to Blackboard .
1. Chart the data in MS Excel.
2. Conduct a linear regression on the chart, show formula and R-squared.
3. Use regression formula to forecast chip price for all months.
4. Calculate the MAPE for 3-period moving average (MA) and linear regression forecasts.
5. Compare the MAPE of the 3-period MA and linear regression forecasts.
Problem 4.9 a, b, and c from Chapter 4 (in the course textbook) Forecasting
Please complete the assignment in MS Excel and submit via Blackboard by the deadline. For part c,please make the comparison between 2 and 3-month moving averages using the Mean Square Error MSE.) in addition to the Mean Absolute Deviation (MAD)...that is, make the comparison with MSE and MAD. I have made the example we did in class available on Blackboard.
4S Dell uses the CR5 chip in some of its laptop computers.
The prices for the chip during the past 12 months were as follows
|
Month
|
Price per Chip
|
|
January
|
$1.80
|
|
February
|
1.67
|
|
March
|
1.70
|
|
April
|
1.85
|
|
May
|
1.90
|
|
June
|
1.87
|
| |
|
|
Month
|
Price per Chip
|
|
July
|
1.80
|
|
August
|
1.83
|
|
September
|
1.70
|
|
October
|
1.65
|
|
November
|
1.70
|
|
December
|
1.75
|